System and method for linked account having sweep feature

ABSTRACT

A computer-implemented method for facilitating electronic funds transactions is disclosed. According to one embodiment, the method may comprise the steps of: issuing a transaction card to a cardholder by associating the transaction card with a demand deposit account from which the cardholder is authorized to electronically disburse funds; receiving an authorization request for an attempted transaction between a merchant and the cardholder, the authorization request containing information associated with the transaction card and the attempted transaction; processing the authorization request based on one or more predetermined business rules; authorizing the transaction without immediately settling the transaction against the demand deposit account of the cardholder; and settling the transaction, at a time subsequent to the execution of the transaction, through automated clearing house (ACH) from funds retained within the demand deposit account of the cardholder.

FIELD OF THE INVENTION

The invention relates generally to electronic commerce, and moreparticularly to a linked account that allows cardholders to apply fundsin a cash demand deposit account or other account to transactions with acredit card, in a manner which allows these transactions to beautomatically reconciled against the cash account on a daily or otherbasis.

BACKGROUND OF THE INVENTION

The consumer credit industry has played a significant role in electronicand other commerce. Millions of Americans use traditional bank-sponsoredcredit cards, private merchant sponsored cards, debit cards, storedvalue cards, combinations of those instruments and other accounts forretail, Internet and other purposes. Credit cards in particular offerconveniences and advantages, successfully attracting consumers who wishto simplify their shopping experience by leaving their cash andcheckbooks behind. Rewards programs also enhance credit card usage.

Despite the convenience of credit cards, many individuals may prefer toavoid using them. For example, some individuals may be reluctant to usecredit cards because they are averse to outstanding account balances,and wish to avoid interest charges on their purchases. Other consumersmay prefer to avoid the temptation of purchasing power in excess oftheir immediate ability to pay. Yet other consumers may desire creditaccess, but are denied that access due to past credit history.

For these and other reasons, cash accounts such as bank debit cards haveemerged to service consumer needs. A debit card is a card that may belinked to a consumer's cash account, such as a demand deposit account(DDA), typically a checking account. When the consumer wishes to make apurchase from a merchant, the debit card is swiped at the point of saleas a credit card would be, except the funds used to pay the merchant arededucted from the cardholders checking account rather than paid from athird party credit network. The need to carry a checkbook is eliminated,while concerns regarding credit cards are avoided.

There are, however, disadvantages to debit cards as a paymentinstrument. First, not all banks offer debit cards. This forcespotential debit card users to open accounts elsewhere if their banks donot offer this service. Second, a consumer may not have time to keeptrack of precise balances on their cash account, so that the cashbalance on the debit card or other instrument may be used upunknowingly.

Thus, some debit cards offer overdraft protection in the form of asecondary line of credit. A checking account accessible with a debitcard, for example, may be backed by a credit line for use in the eventthat there are insufficient funds in the checking account to cover apurchase.

Once a person has exceeded their available cash balance and invoked thecredit line, they can continue to make purchases until they have maxedout this secondary credit line. This may occur without the consumerbecoming aware of that status until the limit is reached, when repaymentmay be more difficult.

Further, in some instances, debit card users may not be offered the sametype of rewards that credit card users are eligible for.

A need therefore exists for a versatile financial instrument thatpermits consumers to make purchases with the funds being drawn from adesired demand deposit account held at any financial institution.

Additionally, a need exists for consumers to have a more controlledaccess to an overdraft credit line.

A need also exists for an instrument that will attract reluctantconsumers by offering them the ability to make purchases by drawingfunds from a demand deposit account, while earning points or creditstoward various rewards. Other problems exist.

SUMMARY OF THE INVENTION

The invention solving these and other problems relates to a system andmethod for a linked account having a sweep feature, enabling individualsto purchase goods and services from a merchant using a cash accountbacked by a credit account, but with overdrafts being reconciledautomatically on a daily or other basis.

According to one embodiment of the invention, a user may receive alinked account instrument that is linked to a cash account, such as ademand deposit account (DDA) already held by the user. The consumer maybe assigned a predetermined cumulative limit or maximum daily “open tobuy” amount that limits the dollar amount of goods and services that maybe purchased against that account, which limit may be independent of theactual cash balance in the account. Purchases can be made by swiping theinstrument (for example, an encoded card) at a merchant point of sale(P.O.S.) terminal or other site. The merchant may receive aninstantaneous authorization decision from an authorization server via aprocessing network.

At a predetermined time each day, transactions made using the linkedaccount card may first be processed against the user's designated cashaccount. The cash account may be examined to determine whether there aresufficient funds to satisfy the charges incurred by the cardholder thatday.

If sufficient funds are found in the cash account, the aggregatetransaction amount may be withdrawn from that account and deductedagainst the sweep card's daily “open to buy” amount.

If the cash account does not have sufficient funds to cover theaggregate transaction amount, the cardholder's ability to makeadditional purchases may be suspended. In this case, any transactionscausing the aggregate transaction amount to exceed the cash accountbalance may be processed as a credit charge against a linked creditaccount, in overdraft fashion.

After the placing of the overdraft on the credit account, a check orsweep may be automatically made against the cash account at 12:01 a.m.the next day or other later time to check for sufficient funds to coverthe extended overdraft credit. If sufficient cash account funds arepresent at the time of a subsequent sweep, the funds may be withdrawnfrom the cash account and the charge on the credit account may becleared. The cardholder may be charged a fee for the use of the creditaccount.

If the first sweep of the cash account does not find sufficient funds tosatisfy the outstanding overdraft amount on the credit account, thelinked account card privileges may remain suspended and interest chargesmay accrue on the outstanding credit card balance until satisfaction ismade.

One advantage of the invention is the ability of a cardholder to set upa cash account of their choice to make purchases, and have the fundswithdrawn from one or more of demand deposit or other accounts,regardless of the institution holding the account. This allows consumersto benefit from card purchases even if their bank does not offertraditional debit-card services.

Another advantage of the invention is the flexibility of the collateralcredit account. The consumer may use an existing credit account, open acredit account with the institution issuing the linked account card, orset up another type of account to supply the overdraft protection.

Yet another advantage of the invention is the ability to perform aseries of automatic sweeps of the cash account in search of adequatefunds. If adequate funds become available during one of the subsequentsweeps, they may be withdrawn from the cash account and the creditaccount may be cleared at the earliest possible opportunity. Thisprovides advantages over a traditional debit card account, where acardholder may have to pay off the overdraft by visiting the bank ormailing a check to the bank.

Conversely, regardless of the constituent accounts, the institutionissuing the linked account card is presented with several options forhandling necessary overdrafts. Based on past credit history, forexample, a cardholder may be given the privilege of continuing to drawfrom the available line of credit without having the card privilegessuspended. If a cardholder's credit history does not indicate such afeature, or if the consumer declines such a feature, the issuinginstitution may constrain the cardholder by suspending card privilegesif a predetermined number of sweeps do not find adequate funds in thecash account.

Additional features and advantages of the invention will be apparentfrom the description that follows, or may be learned by practice of theinvention.

BRIEF DESCRIPTION OF THE DRAWINGS

The invention will be described with respect to the accompanyingdrawings, in which like elements are referenced with like numbers.

FIG. 1 is a schematic diagram of a system supporting a linked accountcard according to an embodiment of the invention.

FIG. 2 is a flowchart which illustrates the establishment of a linkedaccount card account according to an embodiment of the invention.

FIG. 3 is a flowchart which illustrates a process of authorizingtransactions made with a linked account card according to an embodimentof the invention.

FIG. 4 a is a flowchart illustrating the settlement of transactionsinitiated through use of a linked account card, according to anembodiment of the invention.

FIG. 4 b is a graphical representation of one example of the settlementof transactions initiated through use of a linked account card,according to an embodiment of the invention.

FIG. 4 c is a graphical representation of one example of the settlementof transactions initiated through use of a linked account card,according to an embodiment of the invention.

FIG. 5 is a flowchart illustrating overall processing according to theinvention, in another regard.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS

FIG. 1 illustrates a schematic overview of various components of atransaction architecture supporting the use of a linked accountaccording to the invention. A linked account instrument (not shown, forinstance a magnetically encoded plastic card similar to a credit card orATM card) may be provided to consumers to access funds in an existingcash account 160 such as a DDA held at a financial institution, such asa bank or savings and loan, or other institution.

Transactions may be initiated by swiping the linked account card at apoint of sale (P.O.S.) terminal 110 when purchasing goods and/orservices from merchants, or via other mechanisms such as telephone orInternet remote authorizations against the linked account card.

The merchant seeks authorization for each transaction from anauthorization server 130 through a processing network 120, such asthrough the VISA™, MASTERCARD™ or other network which may adapted fortransaction processing against a debit card or other cash account.

The authorization server 130 may be maintained by the institution thatissues the linked account card and may include an account informationdatabase, an account balance database, and/or a transaction historydatabase and other components. The authorization server 130 may beprovided with a first interface 136 to the cash account 160, and asecond interface 138 to the credit account 140. Transactions made usingthe linked account card may be first processed against the cash account160 designated by the cardholder, via an automated clearing house (ACH)150. If the cash account 160 does not contain adequate funds and theauthorization is rejected, the authorization server may temporarilysuspend use of the card and process the transactions as a credit chargeagainst a credit account 140. This credit account may also be designatedby the cardholder, and act as an overdraft account protecting the cashaccount 160.

One or more sweeps against the cash account may be automaticallyperformed at a later time to check for sufficient funds to satisfy theoverdraft amount charged to the credit account 140. If sufficient fundsare present in the cash account 160 at the time of a subsequent sweep,the funds may be withdrawn and applied to the credit account 140 toclear that account. The consumer may incur a fee for the use of thecredit account 140. If subsequent sweeps of the cash account do not findsufficient funds, the linked account card privileges may remainsuspended and the cardholder faces accumulating interest charges on theoutstanding credit card balance.

The account transaction system according to the invention in one regardwill be described in additional detail below.

Setting Up the Account

FIG. 2 illustrates steps that may be followed when establishing a linkedaccount card account according to one embodiment of the invention.Potential linked account cardholders may be identified through knownmarketing solicitation techniques, illustrated at step 210. Thesepotential cardholders, or applicants, may be required to complete anapplication in step 220 requesting information pertaining to theirfinancial history.

In step 230, the potential cardholder's application may then processedby the institution that issues the linked account card. This results ina determination of the applicant's eligibility to receive a linkedaccount card. Credit decisioning may be handled through known services,such as the Magnum™ engine or the like. If a negative decision is made,in step 240 the applicant may be denied a linked account card. If theapplicant is approved, at least two additional pieces of information maybe required.

First, as illustrated in step 250, a potential cardholder may be askedto designate a demand deposit account (DDA) or other backing accountthat will provide the cash funds for purchases made with the linkedaccount card. The designated cash account may be a checking account, asavings account or other account held at a bank or other institution. Inan alternative embodiment discussed below, more than one cash accountmay be selected to provide the cash or cash equivalent for transactionprocessing.

A second item that a potential cardholder may be required to provide instep 250 is a designated credit or other account to handle overdrafts.This may be an existing credit card or other account. If the linkedaccount cardholder does not already have an existing credit account, onemay be established through the institution that is issuing the linkedaccount card. Once these accounts have been identified, they may beverified before the linked account card account is established in step260.

Finally, in step 270 the linked account card itself may be mailed to thenew cardholder along with the materials explaining the nature of theaccount. Upon receiving these materials, the cardholder may call a voiceresponse unit (VRU) or other facility to activate the card, asillustrated in step 280.

The linked account card provided to the cardholder may bear a VISA™,MASTERCARD™ or other acceptance mark. The linked account card may have adaily spending limit, which may be referred to as an “open to buy”amount. This means that, on any given day, the cardholder will only beable to purchase goods and services up to that dollar amount, regardlessof the cardholder's cash balance.

This daily spending limit or “open to buy” amount may be determined bythe credit history information received during processing of thecardholder's application or otherwise. The daily spending limit may alsobe monitored on a daily basis by the authorization server 130 maintainedby the card-issuing institution.

Authorizing Transactions

FIG. 3 illustrates a process of authorizing purchases that thecardholder wishes to make using the linked account card according to anembodiment of the invention.

In step 310, the cardholder may present the linked account card to themerchant. In step 316, the merchant may request authorization from anauthorization server through a processing network, such as the VISA™,MASTERCARD™, or other network. The authorization server 130 determinesin step 340 whether the transaction may be authorized. Thisdetermination may depend in part on whether the cardholder's dailycumulative spending limit or “open to buy” amount has been reached.

If it has, the authorization server 130 may not authorize thetransaction. If the daily spending limit has not been reached, theauthorization server 130 may authorize the transaction. Theauthorization server 130 may also process authorizations against this“open to buy” amount using business rules established by the institutionissuing the linked account card, along with other financial rules.

If the transaction is not authorized, in step 380 the merchant may benotified and the cardholder may abandon the purchase or select anotherform of payment, as illustrated in step 390.

If the transaction is authorized, in step 350 the authorization server130 may keep a record of what amount of the daily spending limit hasbeen used by the purchase. In step 360, the merchant may be notifiedthat the transaction has been authorized, allowing the cardholder toreceive the goods or services purchased in step 370.

If the cardholder wishes to make another purchase using the linkedaccount card, the process may be re-entered at step 310. Otherwise, theprocess flow illustrated in FIG. 3 may end at step 376.

Settling Transactions

Subsequent to the completion of an authorized transaction, the merchantmay issue a settlement request, as illustrated by step 402 in FIG. 4 a.Such a request may be sent to the merchant's sponsoring bank orfinancial institution, through a processing network 404, such as theVISA™, MASTERCARD™, or other network which may be adapted fortransaction processing against a debit card or other cash account. Atstep 406, the merchant's sponsoring bank or financial institution maypay the merchant, while simultaneously sending a request for payment tothe institution 408 that issued the linked account card. As illustratedin step 410, the card-issuing institution 408 may then settle with themerchant's sponsoring bank or financial institution through an automatedclearing house (ACH), as appreciated by persons skilled in the art.

Aside from settlement with the merchant's sponsoring bank, thecard-issuing institution 408 has to settle with the cardholder. For eachtransaction initiated with the linked account card, individual automatedclearing house debits may be generated which contain the unique merchantidentification in the descriptor field such that the merchantidentification appears on the cardholder's cash account statement.

At a predetermined time, such as at, near or just after the end of eachday, the cardholder's designated cash account may be swept via anautomated clearing house to determine whether adequate funds exist tocover all of the day's charges accumulated through use of the linkedaccount card. This is illustrated in step 412. At step 414, an inquirymay be made to determine whether the designated cash account hassufficient funds to cover all of the individual debits that weregenerated by the authorization server 130 in response to the chargesaccumulated using the linked account card.

If adequate funds are present in the cardholder's designated cashaccount 160 at the time of reconciliation, the funds may be withdrawnfrom the cash account 160 in step 418 and the authorization server 130may reset the daily spending limit to its full amount in step 422 forthe following day.

If the designated cash account 160 does not have sufficient funds tocover the purchases at the time of the sweep, the authorization server130 may draw the funds from the available credit on the credit account140 that was designated by the cardholder as illustrated in step 426.

At this point, the authorization server 130 may be configured totemporarily suspend the cardholder's ability to make further purchaseswith the linked account card, in step 430. Step 430 will occurregardless of whether the daily spending limit or “open to buy” amounthas been reached.

It may be noted that there are different variations possible whendetermining how the accumulated daily transactions will be added up andapplied against the designated cash account 160.

In one embodiment, a FIFO (first-in, first-out) system may be used,wherein the daily charges will be applied against the cash account 160in the order in which they were made. As soon as a debit is found thatcannot be drawn from the cash account 160 due to insufficient funds, thecredit account 140 may be applied to cover that particular charge, aswell as any remaining charges up to a credit limit of that account.

Additionally, in another embodiment the sequence of daily charges may beapplied against the cash account 160 based on the relative size of thetransaction amount. For example, all of the smaller charges may be drawnagainst the cash account 160 first, leaving only the remaining largercharges that cannot be satisfied to be covered via the credit account140. Conversely, the larger purchases may be drawn against the cashaccount 160 first, leaving only the smaller charges to be covered by thecredit account 140 when funds in the cash account 160 becomeinsufficient.

Another embodiment may be employed when the cash account 160 can onlyhandle a percentage of a particular charge. For example, assume thatcharges are being applied against the cash account 160 during a sweep.If the cash account 160 reaches a point at which it can only cover acertain percentage of a charge being applied against it, the system maybe configured to have the cash account 160 cover whatever percentage ofthe charge it can, only sending the shortfall to the credit account 140.Or, the system may be configured to have the entire charge be covered bythe credit account 140.

According to the invention, and as seen in step 434, the cash account160 may be swept again at a later time, such as 12:01 am on the nextday, to determine whether or not the cash account 160 now containssufficient funds as reflected in updated ACH activity.

This sweep may be performed in order to catch deposits that may havebeen made to the cash account 160 during the same day as the transactionactivity, but not credited to the cash account 160 until the followingbusiness day. For example, the cardholder may have realized that apurchase was made with the card that could not be covered by the fundsin the cash account 160. The cardholder may have rushed to deposit fundsinto the cash account 160 in order to ensure that the purchase would becovered, only to have the deposited funds be credited to the cashaccount 160 after the initial authorization attempt.

At step 438, another inquiry may be made to determine whether the cashaccount 160 contains adequate funds.

If there are now adequate funds in the cash account 160, the funds willbe drawn from the cash account 160 in step 442, and the overdraft amountthat was initially drawn against the credit account 140 may be clearedfrom the credit account 140 in step 446. The cardholder may incur a feefor the temporary use of the credit account in step 450, and the linkedaccount card may be reactivated with the daily spending limit bereplenished in step 422.

In the event that there are still inadequate funds in the cash account160 when the second sweep is performed, the linked account card accountmay remain suspended in step 454 until such time as the overdraft amountcharged to the credit account 140 is paid off and there is a positivebalance. The cardholder may then be subject to a fee, as well as anyaccumulating interest charges on the credit account. Again, this isunlike a typical debit card, where once a cardholder is forced to usethe overdraft credit line, they may continue to do so until their lineof overdraft credit is maxed out. In other words, conventional debitcards do not have the added safety feature of suspending the account anddisallowing the user to accumulate more debt.

According to the invention, the cardholder may have access to theirtransaction history and daily spending limit information, via aninteractive voice response (IVR) unit. This information may also beaccessible through a web-site hosted by the card-issuing institution.Again, charges processed against the cardholder's cash account 160 mayappear on the cardholder's monthly cash account statement as well.

In an alternative embodiment of the invention, two or more sweeps of thecash account may occur before requiring payment of the credit advancedin order to restore card privileges. In other words, the number ofsubsequent sweeps of the cash account 160 can be varied by theinstitution issuing the card.

FIGS. 4 b and 4 c illustrate settlement transactions initiated throughuse of a linked account card, according to an embodiment of theinvention. FIG. 4 b illustrates an instance in which the linked accountcard 460 has been used to purchase goods and services which total adollar amount 462 that is less than the card's “open to buy” amount 490.When the predetermined time (which may be near the end of the day)arrives for the sweep of the designated cash account 470, it is seenthat the cash account 470 has an adequate balance 472 to cover the costof the day's purchases. Accordingly, the funds can be withdrawn from thecash account 470, and no overdraft action against the credit account 480is needed.

FIG. 4 c illustrates an example in which a cardholder has maxed out the“open to buy” amount 490 of the linked account card 460, by purchasinggoods and services in a graphically illustrated dollar amount 464 thatexceeds the “open to buy” amount 490. In this example, when thepredetermined time arrives for the sweep of the designated cash account470, it is discovered that the balance 474 of the cash account isinadequate to cover the aggregate of the day's purchases. At this point,the funds 482 that cannot be drawn from the designated cash account (theoverdraft amount) may be drawn from the credit account 480.Additionally, the authorization server may temporarily suspend thecardholder's ability to make further purchases with the linked accountcard.

It may be noted that there may be an instance in which the cardholder,on one day, reaches the maximum “open to buy” amount of the card, whilehaving a zero balance in the designated cash account to cover thepurchases. For this reason, the credit account may preferably have acredit line equivalent to the “open to buy” amount of the linked accountcard.

In an alternative embodiment of the invention, the institution issuingthe linked account card may choose to allow a cardholder to continue touse the linked account card once the cash account 160 is found to haveinsufficient funds. The cardholder may be given the option of continuingto draw from the remaining credit line available on the collateral card.This may be a desirable option for individuals who desire a traditionaldebit card, however are unable to have one because their bank does notoffer the service.

In another alternative embodiment of the invention, the linked accountcard may be linked to multiple cash accounts designated by thecardholder in order to allow each to be swept in search of sufficientfunds before the credit account 140 is needed.

FIG. 5 illustrates overall processing according to the invention, inanother regard.

In step 502, marketing solicitation is performed in order to identifypotential linked account cardholders. Interested applicants may berequired to complete an application detailing certain informationpertaining to their financial history. Processing the application, asillustrated in step 506, may comprise the steps of identifying accountoptions most suited for each particular applicant (step 510), and makinga decision regarding the applicant's ability to satisfy the particularrequirements of these options (step 514). If it is determined that theapplicant is approved, they will be required to specify a demand depositaccount or other backing account that will provide the funds forpurchases made with the linked account card. In step 518, the designatedcash account may be verified and the cardholder's linked account cardaccount may be created.

Upon furnishing the linked account card and the account materials to thenew cardholder (step 522), the cardholder may activate the card bycalling a voice response unit (VRU), as seen in steps 526 and 530.

Each purchase or transaction that the cardholder wishes to make with thelinked account card may be subject to authorization (step 534). When acardholder desires to make a purchase, and presents the card to amerchant, the merchant may request authorization from an authorizationserver through a payment network. This is illustrated in steps 538, 542,and 546, respectively. In step 550, the authorization server may checkto see whether or not the daily “open to buy” amount of the linkedaccount card has been reached. The results of this check, coupled withthe adherence to pertinent financial rules, can result in thedetermination of whether or not authorization for the transaction willbe approved or denied (step 554).

Subsequent to the completion of an authorized transaction, settlementwith the merchant occurs, as is illustrated in step 562. The merchantmay make a settlement request which is sent to the merchant's sponsoringbank or financial institution, through a processing network. Themerchant's sponsoring bank or financial institution may pay themerchant, while simultaneously sending a request for payment to theinstitution that issued the linked account card. Settlement between thecard-issuing institution and the merchant's sponsoring bank or financialinstitution may occur through an automated clearing house.

Aside from settlement with the merchant's sponsoring bank, thecard-issuing institution has to settle with the cardholder. In step 566,the cardholder's designated cash account may be swept to determinewhether adequate funds are present to cover all of the day's chargesaccumulated through use of the linked account card. Note that the cashaccount may be swept at any pre-determinable time, which may typicallybe near the end of the day. If there are adequate funds available in thedesignated cash account (step 570), the funds may be withdrawn from thecash account and the authorization server 130 may reset the daily “opento buy” amount to its full amount in step 572 for the following day.

If the designated cash account does not have sufficient funds (step 574)to cover the charges at the time of the sweep, the status of the accountmay be evaluated at step 576, and the cardholder's ability to makefurther purchases with the linked account card may be temporarilysuspended. Additionally, the authorization server 130 may draw thenecessary funds from the available credit account, as illustrated instep 580. The cardholder may be charged a fee for the use of this creditaccount (step 582). Finally, one or more subsequent sweeps of thedesignated cash account may occur, as illustrated by step 584. Ifadequate funds are present, they will be withdrawn from the cashaccount, and the credit account will be cleared. Otherwise, the dailypurchasing abilities afforded the cardholder through use of the linkedaccount card may continue to be suspended until the credit account issettled.

Communication with the cardholder (step 588) may take one or more forms.Statements of linked account card activity will be sent on a regularbasis to the cardholder detailing each card transaction (step 590).Additionally, the cardholder may have access to their transactionhistory and daily spending limit information, via additional services(step 592) such as an interactive voice response (IVR) unit. Thisinformation may also be accessible through a web-site hosted by thecard-issuing institution.

Other embodiments, uses and advantages of the invention will be apparentto those skilled in the art from consideration of the specification andpractice of the invention disclosed herein. The specification should beconsidered exemplary only, and the scope of the invention is accordinglyintended to be limited only to the following claims.

1. A system for facilitating electronic transactions, the systemcomprising: a transaction card containing point-of-sale readableinformation, the transaction card being issued by an issuer to aqualified consumer, wherein the qualified consumer becomes a cardholderhaving a privilege to execute purchase transactions with the transactioncard at a plurality of merchants by submitting valid demand depositaccount (DDA) information for a checking account of the cardholder, andwherein the checking account is provided by a financial institutionother than the issuer of the transaction card; an authorization serveradapted for communication, through a payment network, with point-of-saletransaction terminals; and programming associated with the authorizationserver for: receiving transaction information, through the paymentnetwork, from one of the point-of-sale transaction terminals in responseto an attempted transaction by the cardholder using the transactioncard, issuing a declined message and terminating card processing if thetransaction card is invalid or the attempted transaction falls outsidelimits of card usage, authorizing the transaction by generating a debittransaction for the checking account of the cardholder utilizing anautomated clearing house (ACH) network, and settling the transaction ata time subsequent to the execution of the transaction by sweeping fundsfrom the checking account of the cardholder.
 2. A computer-implementedmethod for executing electronic funds transactions, the methodcomprising: issuing, by a card-issuing institution, a transaction cardto a cardholder, the transaction card being linked to a checking accountheld by the cardholder at a financial institution different from thecard-issuing institution, wherein the cardholder qualifies for thetransaction card by submitting valid demand deposit account (DDA)information of the checking account, the transaction card account dataand the DDA information of the checking account being stored by thecard-issuing institution in one or more storage media; receiving, by amerchant, the transaction card as a form of payment from the cardholderdesiring to execute a transaction with the merchant, wherein informationassociated with the transaction card is extracted from the transactioncard and information associated with the transaction is generated;receiving, at an authorization server, the information associated withthe transaction card and the transaction, the authorization serverhaving access to a storage medium containing the transaction cardaccount data of the cardholder; issuing, by the authorization server, adeclined message and terminating card processing if the transaction cardis invalid or if the requested transaction falls outside limits of cardusage; authorizing, by the authorization server, the transaction withoutimmediately settling the transaction against the checking account of thecardholder if the transaction card is valid and the requestedtransaction falls within the limits of card usage; and settling thetransaction, at a time subsequent to the execution of the transaction,through automated clearing house (ACH) from funds retained within thechecking account of the cardholder based at least in part on the DDAinformation of the checking account.
 3. A computer-implemented methodfor facilitating electronic funds transactions, the method comprising:issuing, by a card-issuing institution, a transaction card to acardholder by associating the transaction card with a demand depositaccount from which the cardholder is authorized to electronicallydisburse funds, the demand deposit account being held by the cardholderat a financial institution different from the card-issuing institution,the card-issuing institution storing the transaction card account dataand the demand deposit account information in one or more storage media;receiving, at an authorization server having access to a storage mediumcontaining the transaction card account data of the cardholder, anauthorization request for an attempted transaction between a merchantand the cardholder, the authorization request containing informationassociated with the transaction card and the attempted transaction;processing, by the authorization server, the authorization request basedon one or more predetermined business rules; authorizing, by theauthorization server, the transaction without immediately settling thetransaction against the demand deposit account of the cardholder; andsettling the transaction, at a time subsequent to the execution of thetransaction, through automated clearing house (ACH) from funds retainedwithin the demand deposit account of the cardholder based at least inpart on the demand deposit account information.
 4. The method accordingto claim 3, wherein the cardholder becomes qualified for the transactioncard by providing a personal identification, an account number and arouting number associated with the demand deposit account.
 5. The methodaccording to claim 3, wherein the step of processing the authorizationrequest further comprises evaluating the attempted transaction inrelation to one or more predetermined account limitations.
 6. The systemaccording to claim 1, wherein the issuer of the transaction card is afinancial institution.
 7. The system according to claim 1, wherein theissuer of the transaction card is not a financial institution.
 8. Themethod according to claim 2, wherein the card-issuing institution is afinancial institution.
 9. The method according to claim 2, wherein thecard-issuing institution is not a financial institution.
 10. The methodaccording to claim 3, wherein the card-issuing institution is afinancial institution.
 11. The method according to claim 3, wherein thecard-issuing institution is not a financial institution.